Aim: To compare the efficacy of intraumbilical Oxytocin and intravenous Methyl ergometrine in active management of third stage of labour. Material and Methods: The present study was conducted in the Department of Obstetrics and Gynaecology, Katihar Medical College and Hospital, Katihar, Bihar, India. Total 600 patients were include in the study and divided in two groups. In Group A, 10 Unit of oxytocin diluted in 20 ml of normal saline with mild force into the umbilical vein about 2 inches away from vulva immediately after clamping the cord after delivery is given in 300 patients whereas in group B, intravenous 0.2mg of methylergometrine at the time of delivery of anterior shoulder of baby was given. Results: Mean blood loss in intra-umbilical oxytocin group was 211.75 ml while in I.V. methergin group it was 214.25 ml. Median in intra-umbilical oxytocin group was 223.15 ml with range of 50- 370 ml. In I.V. methergin group, median was 221.25 ml with range 50-345 ml. The difference was statistically not significant (p =0.30). Conclusion: the method of intra-umbilical injection of oxytocin immediately after the delivery of the baby, significantly reduced the duration of the third stage of labour and the amount of blood loss in the third stage of labour is comparable to the intravenous methergin.